Texas Instruments looks beyond COVID-19

Article Excerpt

Despite COVID-19, Texas Instruments worked to maintain its production rate for computer chips. While demand fell sharply with the pandemic, the company’s decision—and its investments—means it should immediately benefit once demand returns. TEXAS INSTRUMENTS INC. $142 is a buy. The stock (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 915.6 million; Market cap: $130.0 billion; Price-to-sales ratio: 9.5; Dividend yield: 2.5%; TSINetwork Rating: Average; www.ti.com) gives you a stake in this top maker of analog chips. Its products convert inputs like touch, sound and pressure into electronic signals that computers can understand. Industrial manufacturers accounted for 36% of its 2019 revenue, followed by makers of personal electronics (23%), automotive products (21%), communications equipment (11%), datacentre computer systems (6%), and other products like calculators (3%). Customers outside of the U.S. supply 85% of its revenue. Texas Instruments continues to benefit from ongoing investments in chipmaking equipment. It also makes its own chips instead of outsourcing production to other firms. This approach gives it…

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